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In 2018, Smiths Corp. issued a $100 par value preferred stock that pays a 7 percent annual dividend. Due to changes in the overall economy
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In 2018, Smiths Corp. issued a $100 par value preferred stock that pays a 7 percent annual dividend. Due to changes in the overall economy and in the company's financial condition, investors are now requiring a 10 percent return. What price would you be willing to pay for a share of the preferred if you receive your first dividend one year from now?
$92.86
$30.00
$70.00
$63.38
$68.37
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